FAQ
What is Variable Time Dollar ?
Variable Time Dollar (VTD) is an algorithmic, dynamic supply, non-collateral backed, censorship resistant, ERC-20 stablecoin with variable epoch lengths.
What is the purpose of VTD?
Like other DeFi native stablecoins, VTD aims to be a building block in the rapidly growing castle of money Legos that is decentralised finance. Like its predecessors, VTD does this through its permissionless composability with DeFi products, its stability as an asset, and its deep liquidity (as its adoption and marketcap grows).
How is VTD different from other stablecoins?
VTD is a fork of Dynamic Set Dollar (DSD), which is itself a fork of Empty Set Dollar (ESD). For an explanation of how DSD differs from ESD and how all three differ from “traditional” stablecoins, please refer to this article.
What are the key differences between VTD, ESD, and DSD?
What does VTD bring to the table?
The key innovation brought by VTD is dynamic epoch lengths of between 2–6 hours.
Problem:
ESD’s 8-hour epochs generate low returns but longer expansion periods. Meanwhile, DSD’s 2-hour epochs yield high returns by expanding the supply very quickly. This creates massive selling pressure and shorter expansion periods.
Solution:
Introducing dynamic epoch lengths enables VTD to retain the benefits of long and short epochs while minimizing the downsides.
How does the dynamic epoch system work?
Epoch times (of between 2–6 hours) are chosen by the DAO. As VTD comes out of a debt cycle and into expansion, it would likely start at shorter epoch periods, close to the two-hour range. With shorter epoch periods, VTD will expand the supply as fast as DSD as it comes out of the debt cycle. This will enable the protocol to clear the debt owed to coupon holders quickly. However, as debt is cleared, the algorithm will slow down the rate of expansion by increasing epoch lengths (up to six hours). Note that this is similar to how the US Federal Reserve restricts the growth of money supply in periods of strong economic growth in order to smooth out volatility. Later, when the price of VTD again moves below its peg, the algorithm will reduce the length of epoch periods. This will increase the speed at which debt is issued, pushing the price back towards its peg at a faster rate. The result will be a more stable asset, which is the goal.
Does VTD bring any other innovations?
Yes, these are:
Anti-bot Advance Function
To increase fairness for the Advance function, VTD integrates a randomizing delay to the timing of when the Advance function can be called (up to 2 minutes). While bots could continuously call for up to 2 minutes following the turn of an epoch, the additional gas costs will discourage them from doing so.
Advance Function Built Into the UI
VTD doesn’t believe that only the Team or Bots should be allowed to claim the Advance Rewards which is why we’re the first project to build the Advance function into the UI so anyone from the community can call it. With this feature anyone can see when the next Epoch is (remember our Epoch times are variable) and decide if it’s worth risking the gas to win the Advance Rewards lottery. VTD will have a fair launch with zero pre-mining. Even the Team needs to compete with the community to win the Advance Rewards.
Why is DSD the initial liquidity pool trading pair for VTD?
It provides an important growth vector for VTD. DSD holders looking to optimize returns on their holdings may choose to purchase VTD and lock it up along with DSD in order to benefit from the liquidity pool rewards.
Token Mechanics
VTD, as a fork of DSD, works in exactly the same way as VTD except that some parameters have been changed. As mentioned, the key changes are:
- Dynamic epoch lengths (between 2–6 hours)
- 70/30 DAO/LP reward split
- Anti-bot Advance Feature; and
- Advance function built into the UI
Do coupons expire?
Yes, after approximately 30 days. In VTD, this is 180 epochs.
When will VTD launch?
Jan-05–2021 03:07:27 PM +UTC
How do I buy VTD from Uniswap?
Go to the Wallet page on the VTD DAO site here , and click on the “Trade” button.
Or go to the Uniswap page directly here
- Connect your web3 (metamask etc.) wallet to Uniswap and approve the DSD tokens you wish to buy VTD with.
- Enter an amount of DSD into Uniswap, and approve the transaction to buy VTD.
*Pay attention to the price and slippage as the market’s liquidity changes.
Distribution Overview
Advance Rewards of 100 VTDs during bootstrapping and 50 VTDs thereafter.
TWAP based supply expansion and contraction in VTD works exactly as it does in DSD. Examples can be found here.
70% expansion rewarded to the Dao and 30% rewarded to the LP pool(s).
